Featured comment:

We (not just Australia) needed a correction, the markets were getting out of hand and beginning to defy gravity (the economy), especially America and Japan.

I am glad this correction has arrived, for if it had gone on much longer we may have seen a catastrophic crash. Now that a correction has come in a relatively orderly fashion, methinks its safe to get involved again. The correction may go on for a little while yet, but there is great value at the moment, and I for one am buying up where a month ago I'd been a Hanrahan.

The herd is always slow. They didn't see this correction coming, they won't see the recovery coming.

Commenter

Fred

Date and time

June 13, 2013, 8:31AM

Sort comments by:

my 2 cents is that anywhere above 4000 is 'market froth' - i.e. could be blown right off the top very quickly. How far below that things could go I wouldn't have any idea. I do recall the days of Australian banks having close to half their market cap 'vanish' for a little while though .. it was a fairly enlightening experience. I had to re-evaluate a few truisms.

Commenter

sun

Date and time

June 13, 2013, 2:58PM

If everyone is selling, I am going to buy. I have been waiting for a while now. The Allord is close to my first target 4600 now (by looking at the chart). With huge drop in Asian Mkt today, I guess US would have a bad day tonight, and tomorrow our Mkt will drop too, ( It is Fri as well, no one dare to buy on Fri). So I think AllOrd will close to 4600 in a day or two. I will buy some blue chips then.

Commenter

Will Feng

Location

Melb

Date and time

June 13, 2013, 2:04PM

@3.15pmWow so some-one is finally getting it..... great. All options are a default essentially.It's just a matter of who is shafted, and how they are shafted, none-the-less someone, or more realistically groups of people are going to be shafted. Seeing as the JGB market is as big as the US-Bond market, but 1/3rd the size I'm sure it'll create a massive noise in all the other worldwide bond markets (*cough UK could be next*).

Commenter

Bye Bye Fiat Money

Date and time

June 13, 2013, 1:28PM

Selling shares in a company should require a signature on a piece of paper. Clicking a button and riding market trends that are base largely on perception is idiotic and encourages get rich quick maneuvers that require fraction of a second accuracy to maximize profit.This is a game that is being played by a select few that can jeopardize the financial well being of millions and millions of people.Investing in shares should be a thought out process based on long term wealth creation. Not a game for fools with the fastest computer spitting out simulations and predictions at a thousand times a second.It is the the long term future prospects of a company, and the people that work in it that give it value.The way the stock markets work at present will 100% cause another major crash within the next 20 years.

Commenter

PWat

Date and time

June 13, 2013, 1:25PM

Go jump in the lake. I'm sure others agree.

Commenter

Gordon Gekko

Date and time

June 13, 2013, 1:52PM

CommSec limits retail investors to a trade worth $500 or more and charge $20 a pop but automated trades for fractions of a cent occur with no charge for those transactions. This is no level playing field. To eliminate the unfair advantage conferred on high speed traders located near exchanges there should be a flat charge on every parcel of shares regardless of size starting with a minimum of $5. Another option is more competition between exchanges and also between brokers to lower costs for retail investors.

Commenter

The walking dead

Date and time

June 13, 2013, 2:11PM

I doubt very much that you actually have much (if any) knowledge of the actual behaviour and underlying profitability of the hft's you criticise. Why would you? This is an anonymous market, and any profitable strategy is unlikely to be widely publicised.If, as you say, what they do is idiotic, and does not reflect the true value of a company then you, or other market participants collectively, can exploit that. In my experience, idiotic behaviour in markets is rarely profitable......in the long term.

Commenter

WhocanIblamenow?

Location

the Bunker

Date and time

June 13, 2013, 2:52PM

If you're relying on stock market returns to fund your retirement, then you shouldn't be retiring. Go back to work, and save enough to survive on fixed interest sized returns, then you will sleep at night.

This correction is overdone. I haven't been in the oz market for over 12 months (needed the money o/s for other things), so missed both the up and the down but considering getting back in now. Anyway, just wanted to say thanks for the banter all. Keeps me amused during the morning commute.

Commenter

Green Sheep

Location

fast asleep

Date and time

June 13, 2013, 12:52PM

Here we go again..the only thing propping up the ASX200 are the big 4...the exchange really IS a one trick pony!

Commenter

Looking for Value

Date and time

June 13, 2013, 12:47PM

Ladies and Gentlmen. A perfect storm beckons. In the words of an analyst from IG Markets: "The storm clouds are building, the Dow has just suffered its first three-day losing streak for the year...Europe is sliding off its highs; China is slowing down faster than expected, and the BoJ is holding the line on additional stimulus action". Hold tight to your cash if you're long. Hold your short positions if you're short.

Commenter

Gordon Gekko

Date and time

June 13, 2013, 12:46PM

If you're a long trader, cash rich and out of the market right now, do you realise that you are getting richer every day the stock prices fall? The further it falls, the more stock you can buy [at lower prices] with your cash. You can make it even better if you develop short trading skills as well.

Commenter

Gordon Gekko

Date and time

June 13, 2013, 12:14PM

Like your attitude...Specially now, when chips r down...

Commenter

CeylonPsych

Date and time

June 13, 2013, 12:44PM

very true mr gordon

Commenter

Looking for Value

Date and time

June 13, 2013, 12:51PM

Just bought NCM. Took some guts. I hope to be rewarded in the medium to long term.

Commenter

player1

Date and time

June 13, 2013, 12:05PM

Good buy. You have obviously bought it much closer to the bottom then the top. If you didn't finance the purchase with debt and are happy to wait 1, 2 or 5 years for it to come good you will do fine. Just make sure you sell it when it gets anywhere near $40 and then go through and pick the bones of something else out of favour at that time and repeat the feeding cycle :D

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 12:47PM

good luck player...medium to long term does look ok..

Commenter

Looking for Value

Date and time

June 13, 2013, 12:59PM

I moved into cash earlier in the year as blind freddie could see it wasn't going to last and that the Fed was going to ease up on QE so I am well ahead

Commenter

Lance

Date and time

June 13, 2013, 11:53AM

I make most of my income in USD and for the last six months I've been hoarding US dollars, struggling by with my AUDs. It's paid off. But there's still room for more. When it's hitting 0.80c then I'll start converting. Anyway it was obvious the AUD bubble wouldn't last.

Commenter

hr

Location

melbourne

Date and time

June 13, 2013, 12:28PM

1:31 pm - likely RBA views on employment

Soft would be the correct view.

They had already accepted volatility based on the new sampling data from ABS.

As usual the RBA and the mainstream commentators will continue to be behind the curve for the next 6 months and will completely misread 2014 growth.

Commenter

Opinion Only

Location

Melbourne

Date and time

June 13, 2013, 11:51AM

@ Gordon, actually eBay just increased their fees on May 1 to 9.9% commission. Add to that the PayPal charges and you're donating over 12.5% to the eBay empire just for the privilege. If you want a viable alternative you should give quicksales.com.au a go. Aussie owned (backed by carsales.com.au) and it is completely free. eBay (and eBay owned Gumtree) have been throwing their weight around for years... time an Aussie company took the fight to them!

Commenter

Santi

Location

Melbourne

Date and time

June 13, 2013, 11:49AM

Santi, thanks for the update. I didn't know about the price increase because I'm usually a buyer on ebay rather than a seller. Do you know if they reduce their fees for larger sellers? I see many big sellers on ebay with thousands of items listed and tens and hundreds of thousands of positive feedback. Don't you think those large sellers would only sell from their own websites and pay for advertising to get buyers to their websites if that was cheaper/better? Do you think stand alone websites pay more or less than 10% of their revenue on advertising? This is quite an interesting topic and I'm glad I concerned myself with this topic today rather than the dreadful run of red ink that has washed over the ASX 200 recently.

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 1:50PM

Bears have just been awaken. I better be saving up some ammo to shoot them down later.

Commenter

average guy

Date and time

June 13, 2013, 11:29AM

More like an awaken Bull to me..

Commenter

CeylonPsych

Date and time

June 13, 2013, 12:29PM

honor, I was referring to the usage of the 'worlds greatest treasure' tag by ghengis. Wayne Swan is no longer the holder of this title as it is passed on each year, the treasurer of the Philippines is now the holder. I don't believe the filipino treasurer has much impact on the AUD.

Commenter

cuturhair

Location

MEL

Date and time

June 13, 2013, 11:26AM

Sell in May and go away. Typically end of year profit taking. Get a grip. However, Australia is no longer the international market's little darling and everyone knows it. Expect AUD moving much lower settling around .73USD over next 18 months which will be exactly what is needed for the next round of silver linings. Unfortunately pain will precede pleasure. Happy trading.

Commenter

Yanky Doodle

Date and time

June 13, 2013, 11:19AM

The bottom dropped out of Kentucky Fried Chicken overnight.....You've got to admit this is a great country.

Commenter

zac48

Location

Melb.

Date and time

June 13, 2013, 11:13AM

Its interesting that we get unhappy over declines in prices when its the market price mechanisms that leads to the declines. Do people believe that governments should intervene in equity markets? all instrument markets? Should we restrict trading freedom by restricting short-selling or setting leverage limits and requirements? I don't think so. all of these things contribute to efficiency in price discovery. Ultimately inefficiencies financial markets come from inequalities in information, and although it could be argued there is huge information inequality now, it has definitely been trending down over time.

Commenter

Sam

Date and time

June 13, 2013, 11:09AM

should HFT be allowed by insto's then? If it is to be a fair and level playing field? The truth is that its not level, as an investor you just need to catch the trend they've decided to set.

Commenter

worried33

Date and time

June 13, 2013, 11:58AM

Contribute to price discovery. More like how low can I make you go and destroy people's super in the process. But never mind, the taxpayer will pick up the tab because decimated super funds don't pay out as much in taxes or pensions and the age-pension is taxpayer-funded.

Commenter

mitch of ACT

Date and time

June 13, 2013, 12:21PM

There's nothing to stop you renting some server space in Sydney's CBD and running some simple arbitrage functions yourself. If you have the skills (and capital) to program more speculative or manipulative automated trading then there's nothing to stop you from that either. Should institutions be punished because they are more sophisticated than most individuals? Reminds me of winner's curse in IPO pricing.

Commenter

Sam

Date and time

June 13, 2013, 12:32PM

@mitch .. " ... like how low can I make you go and destroy people's super in the process .... " If people's super were in cash or bonds, a crash in the ASX would not affect them one little bit ...

Commenter

Not in asx

Date and time

June 13, 2013, 1:25PM

From 10:05

Alacer's two mines near Kalgoorlie in WA were already considered among the more expensive gold mines in Australia, but the company this morning revealed that costs had blown out by a further $US187 per ounce at the Higginsville mine, and $US274 per ounce at the South Kalgoorlie mine during the March quarter.

Could we have the 'actual' price per ounce to produce so we can have all the facts.

If the total costs to produce are $US287 per ounce at the Higginsville mine, and $US374 per ounce (having only been $US100 previously), it kinda makes little difference.

If however they were previously $US1,200 each, then there's no profit and it paints a very dim (yet far more informed) picture of this news item.

Commenter

Joe

Location

Geelong

Date and time

June 13, 2013, 11:06AM

Who cares for any economic data or any result or any blah blah blah. This CASINO is based on "printing"Lol

Commenter

RD

Date and time

June 13, 2013, 10:52AM

Would like to hear from chart jockeys as to their opinion of the Nikkeii chart. As well, is there any other opinions as to where the Nikkeii goeth. Opinions, of course, need to address the QE conundrum. What on earth is their plan!!!!

Commenter

Bearishly Disgruntled

Location

Forget 88 cent dollar, try 80 cents

Date and time

June 13, 2013, 10:51AM

cuturhair you seem to have some memory loss on how bad the $ was during the liberal years. As the $ currently stands its doing double the value it was 3-4 years ago.

Commenter

honor

Date and time

June 13, 2013, 10:50AM

Cash, Cah, Cash, Money is King.......

Commenter

Kogarah Dragon

Location

Sydney

Date and time

June 13, 2013, 10:49AM

Nothing to worry and buy the dips. Helicopter Ben will save the Titanic on 19th June

Commenter

RD

Date and time

June 13, 2013, 10:49AM

How can he save something that's sinking?

Commenter

Gordon Gekko

Date and time

June 13, 2013, 12:03PM

I've heard the same rot by someone everyday for the last 6 weeks now.

Commenter

4500

Location

The New Black

Date and time

June 13, 2013, 1:00PM

ASX now below 4700, what a fiasco this turned out to be for anyone who got sucked into the market following the early rally this year.

Commenter

Ticky's Fullertons

Location

Brazil

Date and time

June 13, 2013, 10:43AM

In aviation terms we would call the current situation with QE as being in "Coffin Corner". A point in a jets performance envelope, that if you speed up you will stall, if you slow down you will stall. The only way out of this situation safely is with a good pilot at the controls and to lose altitude very carefully. Get it wrong and as the name sake infers it will go very badly indeed. The question here is, do we have a good pilot behind the controls or bad??? Will we loose a little bit of altitude or enter a death spiral.....Remember loosing altitude is the only way out of the predicament.

Commenter

overload

Location

Mel

Date and time

June 13, 2013, 10:42AM

You massively over rate Canberra's importance.

Commenter

Jim Jones

Date and time

June 13, 2013, 11:04AM

It's not Canberra that worries me....

Commenter

overload

Location

Mel

Date and time

June 13, 2013, 11:20AM

Good question...... but they seem to have their hands on some kind of joystick.

Commenter

4500

Location

The New Black

Date and time

June 13, 2013, 1:03PM

Mitch, it's had no direct effect on my retirement plans. I've been in cash for a long time. I hate to think about the effect of this on the poor sods who've fallen for the "don't miss the recovery" rubbish that has been relentlessly peddled by commentators.

Commenter

Stephen

Date and time

June 13, 2013, 10:41AM

Don't worry guys, its just a short term market panic. We will be back to black by 2020 if Chinese decide to spend some money.

Commenter

Not Happy

Location

Brisbane

Date and time

June 13, 2013, 10:36AM

When there's a fall the amateurs go running and the seasoned traders pull out their wallet.

Numerous company's such as Ausdrill and NRW Holdings are trading now at 3x earnings, which is total stupidity. Earnings may slow in the coming months or year, but these are solid company's that'll be up several hundred percent in a couple years.

People sell because they have no idea on how to value company's.

Commenter

Markets Live: All Ords hits 2013 low

Location

Sydney

Date and time

June 13, 2013, 10:36AM

Once again I took profits weeks ago as even a blind squirrel could see this coming. WIll be happy to buy again when all of you sheep have exited for a loss. People obviously dont study the markets enough....

Commenter

Mortimer

Location

Double Bay

Date and time

June 13, 2013, 10:30AM

Right you are Mortimer! Time to buy frozen OJ

Commenter

Randolph

Location

Chicago

Date and time

June 13, 2013, 11:16AM

Maybe you could build a moat around your ivory tower with all your money!

Sheeesh some people.

Commenter

Superiority complex

Date and time

June 13, 2013, 11:39AM

Caught the tail end of a very dapper Joe H commenting on the employment situation. He was also disappointed with the figures and made reassuring comments regarding his future plans. I must have missed the part where he put some meat into what exactly his plans are. Oh well, at least it is a start. We urgently need positive comments to supply some bullish opposition to what appears to to be one way bear traffic. Joe, you are the hope of the team!

Commenter

Bearly Gruntled

Location

Forget 88 cent dollar, try 80 cents

Date and time

June 13, 2013, 10:17AM

What, are you meaning to say that Joe's plans to sack upwards of 20,000 public servants is not going to add to the ranks of the unemployed. Also don't forget that there are many people employed in the private sector supplying services to those soon-to-be-sacked public servants who will also likely lose their jobs as as well. If a sacked public servant no longer has a salary coming in then he/she and their family spends less on everything but the very essentials. Thatalso means less GST on spending and less income tax overall on profits and wages.Good luck Joe. You always looked like you ate the magic pudding that you are going to need to get out of this one.

Commenter

mitch of ACT

Date and time

June 13, 2013, 11:32AM

ED. 12.07 comment says "302" point drop in the Nikkei. Should be 3002 points.

Commenter

Gordon Gekko

Date and time

June 13, 2013, 10:13AM

The lesson in the last 30 days is this; Economists are the modern day Snake Oil Salesmen. Not a single one had it right and only this morning they were revising up unemployment and revising down the dollar.... Can we please (especially you Koukalis) stop the "Pie In The Sky" twitter commentary. Same goes for you Colebatch. Seriously, how often do you two have to get wrong before you accept incompetence? As for you Glenda Kwek, you had "Unemployment at 10 Year High" this morning and "Jobs Show Strength before Midday.. You worry me to Glenda.

Commenter

Adam I

Location

Keilor

Date and time

June 13, 2013, 10:10AM

You only have to look at the chart of the ASX All Ords for the last 3 years. All show a very definite drop in the index from mid-April onwards (sell in May and go away) reaching its low point around mid-July. 12/13 the drop started a little late after a climb upwards but we are more than catching up to past years' performance.

Commenter

mitch of ACT

Date and time

June 13, 2013, 10:32AM

Shane Oliver has to be on top of your list

Commenter

Delay No More

Date and time

June 13, 2013, 10:34AM

3000 here we come !

Commenter

got brain

Date and time

June 13, 2013, 9:52AM

As i've mentioned repeatedly...short short short every day to 3000 as billions wiped off the market in the EASIEST way to make money ever!!

Commenter

assad

Date and time

June 13, 2013, 10:50AM

This market is gold!!! Short on short.

Commenter

Liberator

Location

SEQLD

Date and time

June 13, 2013, 11:22AM

QE.....the drug that is a million times more potent than heroin. It is THE ONLY thing keeping the entire world economy from spinning off it's axis. Unfortunately, at the self same moment, it paints us into the MOTHER OF ALL FINANCIAL CORNERS. If you haven't already (and it really should be required reading to post here...sorry), go to You Tube and watch Paul Crignon's excellent series, "Money As Debt". You will see why we have a fatally flawed economic system.

Commenter

The Seer

Date and time

June 13, 2013, 9:51AM

So how many people's June retirement plans have been blown out of the water by this plunge in the ASX. I know of at least 3. A short-seller's gain is retirement pain. Serves them right if it happens to them when it's their turn to retire.

Commenter

mitch of ACT

Date and time

June 13, 2013, 9:49AM

Mitch, it's had no direct effect on my retirement plans. I've been in cash for a long time. I hate to think about the effect of this on the poor sods who've fallen for the "don't miss the recovery" rubbish that has been relentlessly peddled by commentators.

Commenter

Stephen

Date and time

June 13, 2013, 10:41AM

If you're relying on stock market returns to fund your retirement, then you shouldn't be retiring. Go back to work, and save enough to survive on fixed interest sized returns, then you will sleep at night.

Commenter

4500

Location

The New Black

Date and time

June 13, 2013, 1:05PM

Ahhh, are we going down the old "massage the stats via altering the participation rate" game again..... oh well, as long as it keeps the sheeple happy.....

Commenter

Bye Bye Fiat Money

Date and time

June 13, 2013, 9:45AM

The recent market action is not some 'correction' or minor sell-off but a continuing bear market. People are asking when the low will be and the answer to that is when everyone is sick of the market. Because there are still so many people saying it is time to buy; the low is a long way off...

Commenter

Les

Date and time

June 13, 2013, 9:44AM

Japan is where the market direction is heading....DOWN!! Wow this is starting to get ugly.

Commenter

Bingus

Location

Cooly

Date and time

June 13, 2013, 9:44AM

Correct......but when the stock market detaches itself from reality, then there is real trouble. Right now, it is a fair assessment to say that a return to a bull market in stocks would have ANY CORRELATION to what is happening in the wider economy. It just Casino speculators, that is all, and I929 will look like a small nose bleed when compared to the savage uppercut and right hook that is coming globally and soon....it is called R E A L I T Y.

Commenter

The Seer

Date and time

June 13, 2013, 10:21AM

Guys, could you let me know which broker you use for trading market indexes e.g. ASX200.

Commenter

Not Happy

Location

Brisbane

Date and time

June 13, 2013, 9:36AM

Not if this is what you are after but STW tracks the ASX 200 & is listed on the ASX - you trade it through any broker (commsec, etrade etc...)

Commenter

king_con

Date and time

June 13, 2013, 10:05AM

Thanks, sadly there is not short facility in etrade or commsec. I work with interactive brokers, they don't have short facility either. How about other indexes? Where can I find the codes?

Commenter

Not Happy

Location

Brisbane

Date and time

June 13, 2013, 10:45AM

what is the worlds greatest treasurer going to blame now the aussie dollar is not so high. Surely manufacturers will do better now, if we had any left that is.Too little too late for the aussie dollar.

Commenter

Genghis`

Location

Lounge

Date and time

June 13, 2013, 9:14AM

Again with the worlds greatest treasurer. The treasurer of the Phillipines (the current holder of this title) has little to do with the aussie market.

Commenter

cuturhair

Location

MEL

Date and time

June 13, 2013, 9:49AM

even with the falls in prices, where is the value? the 'good' stocks remain at high PE low dividend yield(e.g. health, IT shares), the bad stocks have uncertain earnings outlook.

I'll give em all a miss still folks.

Commenter

nihal bhat

Date and time

June 13, 2013, 9:05AM

I thought you were looking at big Aussie banks? ANZ at under 13 times earnings yesterday was too expensive for you?

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 9:16AM

Confuscious says: Bear who stick head in bear market bee hive get quick sugar fix but then many stings in the ass! Couldn't resist some PRY sugar, now waiting for the sting.

Commenter

Bearly Gruntled

Location

Forget 88 cent dollar, try 80 cents

Date and time

June 13, 2013, 9:38AM

The problem with better PE ratios giving possible BUY signals at the moment is they are being calculated as past earnings on current prices. Drop those earnings by 10-15% as see if they look so good. Having said that there are quite a few dividends/distributions about to be announced that will go ex-div on 24th June - property trusts and the like. Some are becoming tempting.

Commenter

mitch of ACT

Date and time

June 13, 2013, 10:26AM

@Bearly Gruntled - pretty sure it was Arctic polar bear that said it and not Confucius.

Commenter

Gerson

Location

Sydney

Date and time

June 13, 2013, 10:42AM

LYC getting smashed,

Gap at 29.5-38c would be good buying maybe

Commenter

Bassy

Date and time

June 13, 2013, 9:01AM

45c and I'm in!Has good prospects in the long term, most issues have been dealt with. Shouldn't need more cash until mid 2014 if things go bad, good value if you have a 5 year outlook.

Commenter

worried33

Date and time

June 13, 2013, 10:48AM

If you're still in CAB you should have taken the money at $6 and run. Their business model is broken.

Commenter

Allan

Location

Prahran

Date and time

June 13, 2013, 9:01AM

A business model that makes billions of dollars profit - hardly "broken". Lay off the hyperbole.

Commenter

Fred

Date and time

June 13, 2013, 9:12AM

Sorry Allan, misread your post as CBA. I agree on CAB!

Commenter

Fred

Date and time

June 13, 2013, 9:52AM

hahaha, good one Fred. We are all anxious. These errors happens.

Commenter

Not Happy

Location

Brisbane

Date and time

June 13, 2013, 10:21AM

Short FMG at 3.40 looking good. Iron ore is not rare you know.

Oh and SDL under 8c. Hope you didn't pay more than 8c for it.

Commenter

Allan

Location

Prahran

Date and time

June 13, 2013, 8:59AM

Ding dong 4700.

Keep telling yourself this is just a correction but fair value is @ 3500.

Commenter

Allan

Location

Prahran

Date and time

June 13, 2013, 8:56AM

Looks like poor employment figures will give your prediction a kick.

Commenter

Bearly Gruntled

Location

Forget 88 cent dollar, try 80 cents

Date and time

June 13, 2013, 9:25AM

I certainly hope we get down to 3500 because I'll be buying with my ears pinned back. But, sadly, I doubt we'll ever see that number again.

Commenter

player1

Date and time

June 13, 2013, 12:18PM

Finding it hard to make sense of this shale gas and oil boom. NY Times is running a controversial series on what many see as a ponzi. Works like this: shale gas and oil wells are expensive but produce a lot in their first year but then they deplete very rapidly, most seem to be only producing at 5 percent of their first year within 7 years. The only reason they can claim profits is by underestimating their wells' rapid depreciation and also, in the early years doing a lot of new wells in the "sweet spots". The premier shale gas company, Chesapeake Energy is rated junk, and is selling assets to meet its heavy debt and drilling commitments to keep that "sugar hit" of early production going. Oil pipelines for shale oil are being deferred because the sources of supply change so rapidly that trains are the only economic method of transport, requiring a dense train network. Making things more complex is the very uneven distribution of the resources even in the "sweet spots". Add in the immense amounts of highly polluted water needed and the high costs all round, this starts to look a much more marginal business ready for major correction. It will help alleviate peak energy supplies but only if their prices are high. But as I said, for somebody like me, its hard to make any sense out of so much noise.

Commenter

Catch 22

Date and time

June 13, 2013, 8:55AM

The basic problem is a shale gas well costs more to install, more to run and has a short life compared to a conventional gas well. This article tells the long story http://www.globalresearch.ca/the-fracked-up-usa-shale-gas-bubble/5326504.

Commenter

DW

Location

Warana

Date and time

June 13, 2013, 9:52AM

I've been reading all over the place and it would be nice to read some investigative reporting instead of industry propaganda, a lot of money, let alone the environment, will be risked. Journalism anyone?

Commenter

Catch 22

Date and time

June 13, 2013, 9:55AM

Got out the bull suit last night and woke up to a sea of red. The reaction of the multi millions ,who hold overseas shares, whenever there is a sniff of an end to QE defies belief. Am I missing the mark when I say that the end of QE means the USA economy is improving? So what can we expect when QE finally ends? If they borrowed at low interest rates, we could assume they have an exit plan.

Commenter

Bearly Gruntled

Location

Forget 88 cent dollar, try 80 cents

Date and time

June 13, 2013, 8:44AM

My take on it is QE weakened/weakens the USD. Now that Bernanke has told market participants that an end to QE is on the horizon that means a strengthening USD and rising interest rates may also be on the horizon. Therefore, US money borrowed at ridiculously low interest rates and invested overseas is scurrying home to the US before it is caught out in 1-2 years when QE starts to taper and 2-3 years when US interest rates start to rise. Also, the US stock markets have outperformed most overseas stock markets this year so there's plenty of good investment opportunities in the US now.

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 9:15AM

The exit plan is there is no exit plan....The central bankers have been jawboning the markets every which way, and seeing as markets are traded by computers how hard can it be? The overseas and local media tout their rubbish that money printing and central bankers can defy economic reality, they cannot. The economies of the western worlds are in deep trouble, as is the banking system. Look at what the big boys have done, they are cutting and running from consumer disc. on the DOW, and have sold huge stakes in the financials.

The exit plan is an overnight currency devaluation of 50-80%...

Commenter

Bye Bye Fiat Money

Date and time

June 13, 2013, 9:16AM

Assume - LOL, read the minutes of their meetings.

Only 1 board member saw the derivatives problem before the GFC. Bernanke was asked about a housing bubble popping before the GFC and he said - it's never happened, won't happen, can't happen. We all know it did happen.

Recent mintutes indicate they can't agree on an exit strategy.

The big problem is all central banks havn't co ordinated the money printing QE progrmas, so as 1 ends, bond yields will rise and you can bet the remaining printed money will migrate seeking a better yield.

Commenter

nolongerconfused

Location

Sydney

Date and time

June 13, 2013, 9:25AM

We (not just Australia) needed a correction, the markets were getting out of hand and beginning to defy gravity (the economy), especially America and Japan.

I am glad this correction has arrived, for if it had gone on much longer we may have seen a catastrophic crash. Now that a correction has come in a relatively orderly fashion, methinks its safe to get involved again. The correction may go on for a little while yet, but there is great value at the moment, and I for one am buying up where a month ago I'd been a Hanrahan.

The herd is always slow. They didn't see this correction coming, they won't see the recovery coming.

Commenter

Fred

Date and time

June 13, 2013, 8:31AM

We need the dollar at USD 0.90 ASAP.

Commenter

Catch 22

Date and time

June 13, 2013, 9:01AM

Well put Fred, this time last week i was waiting to hear the correction word, was thinking how the fall was starting to feel like early days of previous GFC when experts were smugly saying "don't sell or you'll lock in the loss", wish i had sold earlier then & now. But as someone said yesterday, Tony and Joe will fix all cometh September.

Commenter

toxic

Location

illlawarra

Date and time

June 13, 2013, 9:33AM

Funny I thought the herd started the so called correction, you don't actually think anyone knows why they're selling and others obviously buying do you, that would be giving credit where no credit is due.

Commenter

DHT

Date and time

June 13, 2013, 11:03AM

Correction to continue for another 4 weeks, it's scary to see the falls now worse than GFC July 2008, it's going to be nasty for those holding, but a dream for those that buy in at the bounce

Commenter

panda

Location

perth

Date and time

June 13, 2013, 11:46AM

wow, over 10% franked div on Westpac, this is a dream scenario, no wonder their surging up, buy while you can.

Commenter

Davidend

Date and time

June 13, 2013, 12:14PM

Uhhh, correction? The XJO has lost less than 1% today, hardly a correction!

Commenter

Jay

Location

Melbourne

Date and time

June 13, 2013, 1:31PM

Re EBAY .. try a weekly chart .. it is called Distribution .. the path of least resistance on this stock is down .. all the market majors have made what they need to on the way up and are now selling down .. the rolling over mushroom top is the give away .. basic Wyckoff behavior pattern on how the markets .. really work FYI .. http://www.wyckoffstockmarketinstitute.com/ .. Hope this helps

Commenter

Nelson

Location

melbourne

Date and time

June 13, 2013, 8:27AM

Thanks Nelson. Yeah I think it has had about 10 percent short interest from hedge funds. That doesn't scare me at all. What I find more interesting is how badly many hedge funds have under-performed the US markets recently. I'm happy to hold my ebay stock because I built my position around US$46 and even though it has under-performed most of my other US stocks I've still done fine with the AUD/USD exchange rate in that period.

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 9:02AM

4,690 close today on the button. Place your bets. Place your bets.

Commenter

Doug

Location

Sydney CBD

Date and time

June 13, 2013, 8:26AM

Close, but no cigar ;-)

Commenter

Doug

Location

Sydney CBD

Date and time

June 13, 2013, 2:01PM

down down down. followed closely by wages, education levels and house prices. say it with me everyone - 457 visa is coming for your job soon. everything needs a balance so watch for crime to go up up and up.

Commenter

smilingjack

Date and time

June 13, 2013, 8:22AM

Shorts are brilliant - how are we all going?

Commenter

Liberator

Location

SEQLD

Date and time

June 13, 2013, 8:07AM

Well done Lib. What did you short? I'm sitting on the fence. Watching for this to stabilise. I don't do shorts, but am thinking of opening an account with IG Markets since I reckon it's on a downer for some time to come yet. Could even get worse if Ben Bernanke pulls the wrong levers. Who do you do shorts with, if I may ask?

Commenter

Gordon Gekko

Date and time

June 13, 2013, 8:29AM

Not to offend anyone here, but consider the parallels of the shorter and a virus: both go into the host (body / market) with the SOLE purpose of helping themselves, not the host. Both also thrive on the breaking DOWN of the host 's basic mechanisms (whilst in reality, their actions cannot even exist without a host in the first place.) This is retrograde in the extreme....and is why a virus is known as an infection....which needs to be killed off, so that the host (again, body / market) can regain it's strength. Whilst I am sure our friends Liberator and his merry band here are fantastic people, he and other shorters use the market in the same way a virus uses any living organism. That is the saddness of their way. Making money from others 'losing" theirs is, in the end analysis, a self defeating action. If it isn't, perhaps soemone can tell me how they could theoretcially make money if they shorted something down to "zero"? That indeed is the death point....ask any clever virus. Problem is, when the host dies...so does the virus...that is why it isn't a clever organism after all.

EDS: The most successful virus' do not kill, they move from host to host, evolve and return. I would consider the common cold a very clever organism.

Commenter

The Seer

Date and time

June 13, 2013, 11:49AM

Correct EDs....but perhaps you gloss over my point, or you miss it entirely. What is to be served first....the needs of the host or the needs of the virus? Moreover....when you catch the common cold Ed, do you cheer on it's arrival? Didn't think so. You reach for some medicine. Removing shorting from global finance will be like Fleming's penicilin when it is prescibed......a huge step up in world financial morality (not to mention health) will be on it's way.

Commenter

The Seer

Date and time

June 13, 2013, 12:17PM

Yes, a smart virus or parasite does not kill its' host.

Commenter

JohnB

Date and time

June 13, 2013, 12:49PM

Is it too late to dump the banks? Alpha?

Commenter

geoff

Location

burraneer

Date and time

June 13, 2013, 8:05AM

..with commodities going down and the Aussie starting to settle and recover.....perhaps its time to buy??

Commenter

mirage

Date and time

June 13, 2013, 8:18AM

I think that this depends on which bank.

Commenter

tango8

Date and time

June 13, 2013, 8:35AM

Why would the banks be up in anticipation of poor employment data? Does someone know something that the market doesn't?

Commenter

hlnbidoffer

Date and time

June 13, 2013, 8:36AM

Time to buy. The ostriches who didn't see this correction coming are the now the same ostriches who can't see the recovery coming. Plenty of value in the banks at the moment.

Commenter

Fred

Date and time

June 13, 2013, 8:51AM

Banks going well so far. Would be nice to know if overseas money is buying them?

Commenter

Bearly Gruntled

Location

Forget 88 cent dollar, try 80 cents

Date and time

June 13, 2013, 8:57AM

AVB, in PRE NR, looking likely

Commenter

Bassy

Date and time

June 13, 2013, 8:03AM

Yesterday, someone made a comment that ESI was going to explode today. Not sure who it was but do you care to shed some light into this? At 0.9 cents, a small rise in the share price is going to create some positive gains.. Thanks.

Commenter

hlnbidoffer

Location

Melbourne

Date and time

June 13, 2013, 8:02AM

Well someone was wrong lol

Commenter

jconnor2500

Location

Sydney

Date and time

June 13, 2013, 8:37AM

Potential Funding for CDP Commercial Demonstration Plant Via DEPI to be announced shortly with CSI MCG Monash Capital Group also to be announced shortly. MCG were going to fund the whole amount to build the CDP prior to the ALDP being announced. They are the only ASX listed Co. currently in the public domain who have announced they are short listed to receive a slice of the governments $90M via the ALDP .MOU with AGL at Loy Yang to become concrete and announced where CDP is being built. Currently trading at 12 month lows. Has the potential, if it plays out, to become the new ASX market darling with 12c ST not out of the question. 1st to market new Technology patented worldwide

DEPI to let Co's know who are/n't getting funds mid month(June), those that miss are are obliged to announce, those that are are under confidentiality agreement not to, no brainer IMO

Commenter

Bassy

Date and time

June 13, 2013, 8:40AM

Pershing Australia Nominees.now on the register, DYOR

Commenter

Bassy

Date and time

June 13, 2013, 2:42PM

Anyone know why ebay (EBAY - NASDAQ) has been struggling the last few months? It seems like a great company to me with the ebay and PayPal business units particularly. It's about 24/25 times earnings which doesn't seem expensive to me and has an average one year price target of about US$64 from analysts. Am I missing something? Is it worries about competition to PayPal in mobile payments? I think that's over done. It takes years to build customer trust with payment solutions and anyone who thinks PayPal is going to get pushed aside doesn't understand customer behaviour online. Any opinions on this stock would be appreciated.

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 8:00AM

eBay and Paypal rely on ripping off the seller about 10%, that's obviously passed on to the buyer. I cannot work out why someone with cash (Richard Branson) don't compete against them. They have humungous revenue, I'd imagine low running costs. It is absolutely ripe for new competition, I can't work out why it hasn't happened. Maybe there's rumors of it coming?

Commenter

JohnB

Date and time

June 13, 2013, 8:22AM

I am an ebay buyer for family and friends, with 100% positive feedback 2200+ times dating back to the days when buyer could get negative feedback. I believe that as the economy deteriorates, the supply of quality used items at giveaway prices on ebay also is drying up. Bargains on new items are obtained mostly via closing down sales, and this source also will eventually dry up.

Commenter

nester

Date and time

June 13, 2013, 8:33AM

No JohnB those fee figures are incorrect. Just go to PayPal's website and you can see their fee structure. For the purchaser transaction frees are $0. For the merchant where accounts have monthly receipts of up to $5000k they are 2.4% + $0.30. 2.0% + $0.30 for accounts with monthly receipts between $5000.01 and $15000. 1.5% + $0.30 where accounts have monthly receipts between $15000.01 and $150000. Do you think other banks in Australia or around the world provide their SME online merchants 1.5% transaction fees? lol No PayPal is the price leader and also has far more sophisticated fraud detection technology and consumer recognition/trust around the world. PayPal is perfectly positioned to drop fees even further if necessary to destroy earnings of any new entrants. Any other ideas? Their July earnings report will be interesting. It has been heavily shorted by Hedge funds recently. It will be interesting to see how they are positioned going into that next earnings report.

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 8:54AM

@Gordon Akman. I'm an occasional seller and reported to you 10% from DIRECT experience. They are absolutely ripe for a competitor to come in and blow them out of business.

Commenter

JohnB

Date and time

June 13, 2013, 9:09AM

@JohnB, oh I think I know what you mean. Like 7.5% ebay fees + 2.5% PayPal fees = 10% total fees to sell on ebay? What we would need to compare that to would be how much Amazon charges in fees to sell through them + credit card/merchant fees (Amazon doesn't allow PayPal to be used as a payment option - vicious competition with ebay at it's finest.). Also, we would need to compare those ebay merchant fees with other online merchants who pay for advertising to get people to buy from their own site. I'm guessing most would spend a lot more than 10% in advertising but also be able to charge higher prices because the price competition on ebay between merchants is the most brutal I have seen online including Amazon.

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 9:24AM

That's right. 10% combined fees. An outrageous amount. What do I get for that? On carsales (that is also a rip off), I can advertise a 20k car for $70, a 0.35% charge. We're protected by consumer law and don't need all the BS Paypal say we get for their outrageous fees. We've also got feedback scores to guide us. It is a ripoff and please someone step up and compete with them. You'll be a gazillionaire in no time.

Commenter

JohnB

Date and time

June 13, 2013, 10:42AM

Ebay's business model was acting an an agent of the sale. The idea was the socialising of the sales mechanism. You could be a seller and a buyer too.

So by charging the user (ME and YOU) 10% to use its service is forcing it to become a vendor only service as the like of you and I will not appreciate losing 10% of the agreed price. It is a discouragement or barrier to business.

Why would anyone take the risks of buying via Ebay when you have far better controls, sale ownership, and warranties with Amazon?

Not a particular fan of either, but the dross on Ebay worries me so I avoid it.

It's alot like Google search. It is so advertiser centric, it is now undoing itself from the core out.You now have to be Google savvy in order to work out how to get to the results you want and not the results Google's advertisers want you to get.

It's a shame therefore to have to be search smart in order to outsmart the algorithms to use it as it was 'originally' intended.

I suspect (wouldn't know coz I don't use them) the same must be happening to Facebook and Twitter.

Commenter

Joe

Location

Geelong

Date and time

June 13, 2013, 11:15AM

JohnB, Google "credit card merchant fees" and click on the RBA's MS Excel spreadsheet which is updated daily. You will see Visa and Mastercard charge 1.45%, American Express charge 2.51%, and Diners Club charge 2.36%. Then a merchant also requires a separate "payment gateway" service provider's software/facility to be installed on their website - Google "Payment Gateway Reviews in Australia" and add on their fees. Then you will understand that PayPal is cheaper than all those options. PayPal is a separate business unit within ebay. If you want to compare ebay's fees in the marketplace you would need to compare it to a competitor/alternative online sales or auction site of that size. Amazon is the only other one. People of suggest Google has the resources to take over any industry. However, the reality is it is much harder to unseat an entrenched market leader by just throwing money at it. Look how Google Plus has fared against Facebook in social media or how Microsoft has fared against Google in search.

Commenter

Gordon Akman

Location

Broadbeach

Date and time

June 13, 2013, 11:51AM

Good points Gordon Akman. I think facebook is unique as people are set up for it and rely on the herd moving (or not). As opposed to eBay. It looks on the surface 7.5% to sell something (plus 2.5% paypal) is way over the top. Bring it on Google. I'm with you Joe, I'm not going to use ebay any more. There's conviction. Protest with my feet.

Commenter

JohnB

Date and time

June 13, 2013, 12:35PM

I get the feeling many retail investors don't know that ebay bought PayPal, PayPal now accounts for 42% of ebay's revenue, most of the transactions PayPal processors are not ebay transactions, PayPal provides physical eftpos machines/equipment in bricks and mortar stores for numerous fortune 500 companies, ebay is growing between 10% and 16% year on year but PayPal is growing between 22% and 29% year on year. Soon PayPal will generate more money than ebay's marketplace and auction business units. I invested in ebay because of PayPal - not because of the ebay marketplace and auction parts of the business. In 2013 ebay forecasts PayPal will process over US$20 billion on PayPal mobile alone. Mark my words ebay's share price has gone up 500% since 2009 and this stellar growth is far from over...